Page 33 - Logistics News - Issue 02 - 2024

RIS K MAN A GEMENT

Beyond risk engineering, matching this to an effective and fit- property and cargo.
for-purpose insurance programme that takes care of the unique • Additional coverage may need to be considered for high-value
and complex risks facing transport and freight/cargo is key, or sensitive cargo such as electronics and liquor.
and here marine insurance plays a leading role in safeguarding • Having the correct policy limits in place will ensure sufficient
valuable and high-risk cargos. cover for potential losses. The temptation to cut costs on
insurance coverage and not properly interrogate and insure
By scrutinising policy terms regularly – with the aid of the true value and nature of cargo can have disastrous
an experienced marine broker – businesses can fortify consequences if things go wrong.
their financial resilience by incorporating appropriate risk • Policy deductibles and excesses need to be reviewed to ensure
management steps that adequately address potential exposure they are reasonable and manageable.
as far as possible, and then transferring risk where appropriate
via marine insurance coverage. The key thing to remember is An essential added cover that should be included in every
that while marine insurance may seem straightforward, each marine insurance policy is Sasria insurance, which provides
policy must be customised to meet the unique needs and risk cover against special risks such as civil commotion, public
exposures of every client, cargo and operating environment – disorder, strikes, riots and terrorism. It is important to note that
and it’s here where experienced marine insurance brokers and according to Sasria regulations, the cover is attached to an
underwriters play an important role. underlying marine policy and is designed to bridge the gap in
covers under the institute war and/or strikes clauses. Any claims
Given the complexity and interrelated nature of risks, it is will be dealt with according to Sasria regulations and will be
important to fully understand the nature of freight/cargo being reported and dealt with through the marine policy.
transported, its value (including duties and taxes), the nature
of transport risks faced and who is liable and what exactly is In tandem with these measures, embracing a diversified
covered at every point of the supply chain. An outright loss of approach to transportation, harnessing emerging technologies
cargo that is not correctly insured will bring a raft of crippling for cargo monitoring and fostering collaborative alliances
financial and professional liabilities that could easily shut down within the industry can augment resilience against unforeseen
the business. disruptions.

In building a well-rounded marine insurance policy, the Businesses entrusted with the task of cargo transport must
following needs to be taken into consideration: fortify their defences against uncertainty and volatility through
• Understanding policy terms and conditions is crucial to a blend of risk engineering, insurance and business continuity
having the correct cover that will address political risks (civil planning, and this is more important than ever in an industry
unrest, riots and strikes), business interruption and damage to sector that underpins trade and world economies. •

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